AUD/USD dropping nicely towards profit target, remain bearish for a further drop

The price has dropped nicely from our previous call on Friday. We remain bearish looking to sell on strength below 0.7942 resistance (Fibonacci retracement, horizontal overlap resistance) for a further push down to 0.7875 support (Fibonacci extension, horizontal swing low support, bearish channel momentum).

RSI (34) sees a descending resistance line holding our bearish momentum really nicely.

Correlation analysis: We are expecting commodities weakness with AUD/USD and NZD/USD both expecting drops.

Sell below 0.7942. Stop loss is at 0.7981. Take profit is at 0.7875.

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